The Hindu : Business : Khaleda welcomes Indian investment

Online edition of India's National Newspaper
Thursday, Mar 23, 2006

Business

Business

Khaleda welcomes Indian investment

Special Correspondent

Expresses concern over mounting trade imbalance

NEW DELHI: "We welcome foreign investment, particularly from our friendly neighbour, India," Bangladesh Prime Minister Khaleda Zia said at a business meeting here, her last engagement before leaving for home on Wednesday night.

Describing Bangladesh as a "significant" investment destination, the Prime Minister said: "We welcome our friends abroad, particularly those from India, to take full advantage of Bangladesh's favourable investment friendly regime and the various incentive packages that are in place."

Though a small country in terms of area, Bangladesh had a population of over 140 million and a sustained, annual average growth rate of over five per cent over the last two decades or so.

Begum Zia did not shy away from saying that the "ever-growing" trade gap between Bangladesh and India was a matter of considerable concern to Dhaka.

"It is a matter of concern not because India stands to be the gainer. Certainly we cannot and we do not see it that way. Nevertheless, we are concerned because such a situation is hardly sustainable. We would, therefore, urge our friends in India to facilitate preferential duty-free access of Bangladeshi export to India.

"We also look forward to the dismantling of various non-tariff barriers. The traders in Bangladesh would particularly appreciate an improvement in land port facilities on the Indian side of the border," the Prime Minister stated.

In turn, she said, her Government would "examine" the possibility of greater "trade creating" Indian investment in Bangladesh within the framework of the existing investment regime.

"Bangladesh has a very open mind about strategic business partnership between the traders and investors of the two countries. My Government is keen to support such partnership in key areas, so that investment in specific manufacturing sectors may meet domestic consumption as well as export to SAARC countries, especially India and abroad," Begum Zia added.

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